U.S., Britain Quietly Back Military Build‐Up of Iran

WASHINGTON, July 24— Iran's military power on land, in the air and on the sea is be ing built up in the Middle East under a billion‐dollar defense program quietly underwritten by the United States and Britain in preparation for the British withdrawal from the Persian Gulf later this year.

The principal American con tributions to the program are squadrons of the late‐model Phantom jet fighter‐bombers. Britain is providing hundreds of tanks and naval units.

This whole build‐up, accord ing to officials here, is designed to fill the vacuum that would have been created by the Brit ish departure and to counter act Soviet influence and Arab radical moves in the strategic Persian Gulf, whose coastal states and islands produce much of the oil on which the United States, Western Europe and Japan depend.

Acting with British‐American blessings, the Iranian Shah, Mohammed Riza Pahievi, has accepted responsibility for the security of the Persian Gulf after Britain removes her pro tection and armed forces from Bahrain, Qatar and the seven Trucial States.

Iran already possesses what American officials term a “Cred ible deterrent” in the air and the sea in the gulf area, par ticularly in relation to neigh boring Iraq, which Teheran considers to be an unfriendly country, and which is heavily armed by the Soviet Union.

American and British sales of modern equipment to Iran since 1969 have raised her military strength to a relatively advanced stage from what was an obsolete armed establish ment. But this effort is now being significantly accelerated. Iran's 155,000‐man armed forces are to be expanded simultane ously.

Major Role Foreseen

By 1975, when the present program of military deliveries and training is completed, Iran is expected to be a major Middle Eastern power and an element of stability in the volatile gulf region, American officials say.

Unpublicized United States credits, including the rare par ticipation of the Export‐Import Bank, are financing the cur rent, secret deliveries of the F‐4‐E model of the supersonic Phantom fighter‐bombers.

The bank usually refuses to finance sales of military equip ment. Officials of the bank de clined this week to discuss the Iranian credits.

Britain is selling Iran 800 new tanks, partly on credit, this year as well as missile‐ equipped frigates and large armored hovercraft for troop transport. A fleet of helicopters has been ordered in Italy.

In the last two years, Washington has provided cred its for $220‐million worth of Iranian aircraft purchases in the United States. They covered 31 Phantoms of the earlier F‐4‐D model and 109 F‐4 jet fighters already in service in Iran.

The Teheran Government is currently negotiating for $140‐ million more in 1971 credits from the Export‐Import Bank to pay for 32 new‐model Phantoms. Presumably it will seek credits in future years to finance continuing deliveries.

The first four late model F‐4‐E Phantoms were delivered last month, and the balance are to be delivered at the rate of four a month.

135 Phantoms Planned

Under present plans, the Iranian Air Force is to be ex panded to a total of 135 Phantoms by 1975, to serve alongside the F‐3 and F‐86 squadrons already In Its pos session.

United States credits were also used to build and expand Iranian air and naval facilities on the Persian Gulf and to complete a plant south of Teheran where some 850 Amer ican‐made M‐47 medium tanks, long held by the Iranian Army, will be “retrofitted” through the installation of more power ful engines and guns.

The Nixon Administration has not announced the extent of its financial cooperation in the Iranian defense program. The known request to Congress for military‐assistance programs to Iran for fiscal 1972 is for only $950,000 for training and sup port of the 250‐man United States military advisory mis sion.

The first purchases of Phan toms and F‐5's last year were financed through $100‐million in credits under the foreign military‐sales program, but these figures remain unpublish ed.

A $120‐million Export‐Import Bank credit line granted late last year for military equipment was also not publicly an nounced.

Provides Half of Funds

The Export‐Import Bank pro vides one‐half of the required funds directly and guarantees private bank loans for the other half.

To bolster its American‐built armor force, the Iranian Govern ment signed an agreement with Britain early this year to buy 330 Chieftain tanks and am munition, for $135‐million.

Last month, it contracted to buy an additional 470 Chief tains for $240‐million. The first 36 Chieftains are to be deliver ed in 1971.

When these British deliveries are completed, before 1975, Iran will have a formidable armed force of more than 1,500 Amer ican and British‐made tanks.

Already received from Britain are two of the four 1,200‐ton frigates, especially built for the Iranians, equipped with Seacat guided missiles.

The Iranian Navy has already taken possession of eight 10‐ ton armored hovercraft, ex tremely fast naval craft, de signed to carry 35 combat troops at speeds of 50 knots.

Also on order in Britain are four 50‐ton armored hovercraft that can carry 140 armed men at 60 knots.

The Shah is said to believe that a high degree of military mobility is essential to control the Persian Gulf area. There fore, his Government has been buying the most modern super‐ sonic aircraft, new hovercraft and helicopters as well as hundreds of tanks suited to the mountain and desert terrain of Iran and adjoining countries.

A base for the hovercraft has been built on the island of Kharg off the Iranian coast in the northern section of the Persian Gulf.

Iranian ground troops and the hovercrafts are to be sup ported by a fleet of more than 200 helicopters.

Most of the helicopters have been ordered from Italian com panies producing the craft un der American licenses. Sixteen Chinook medium transport heli copters were delivered earlier this year. Before the end of 1972, Iran will receive 55 light transport helicopters and 145 general‐use helicopters.

To assure proper deployment of the new forces along the northern coast of the Persian Gulf, Iran is expanding, with Export‐Import Bank assistance, the port of Bandar Abbas, where a new naval base and airfield have already been added.

Bandar Abbas controls the Strait of Hormuz, which con nects the Persian Gulf with the Gulf of Oman to the east.

A new airfield is being built at Jask on the northern coast of the Gulf of Oman. Another airfield was built at Bushire, nearly opposite Kharg. The naval base at Khurramshahr, at the northernmost point of the Persian Gulf is being en larged.

Officials here said that de spite the credit facilities, the highly active Iranian defense program is a major drain on the country's foreign‐currency re serves.

Between 1965 and 1970, Iranian arms purchases on credit totaled $1.6‐billion. Cur rent estimates are that pur chases in the United States, Britain and Italy will add at least $1‐billion more to the Iranian debt obligations in 1971 and 1972.

Troops and Planes Involved

The British military with‐ drawal this year from bases on the island of Bahrain will in volve an infantry battalion and a jet‐fighter squadron. The withdrawal from Qatar and from Sharja in the Trucial States, also involved troops and aircraft.

Britain currently maintains four aircraft squadrons, two infantry battalions, two armor ed‐car squadrons, one frigate and five mine‐sweepers in the Persian Gulf area.

The withdrawal will mark the end of British protection over Bahrain, Qatar and the Trucial States—Abu Dhabi, Du bai, Ajman, Ras al Khaima, Sharja, Fujaira and Umm al Qaiwain.

As the British departure ap proaches, Bahrain and Qatar each plan to declare independ ence and to apply for United Nations membership. The Tru cial States hope to form an in dependent federation.

Last March, Britain offered to turn her Trucial Oman Scouts, a British Army organization, into the nucleus of a new Trucial Federation army. Lon don offered to lend officers and other personnel to the new army and to supply equipment as well as “elements of British forces” to serve for liaison and training.

Britain also promised regular visits to area by Royal Navy ships.

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A version of this archives appears in print on July 25, 1971, on Page 1 of the New York edition with the headline: U.S., Britain Quietly Back Military Build‐Up of Iran. Order Reprints|Today's Paper|Subscribe